Just In Time Delivery Definition
Just in time delivery is a term used to describe a manufacturing or delivery process in which goods are delivered only as they are needed.
This type of system is designed to minimize waste and maximize efficiency by eliminating the need for inventory storage. In a just in time delivery system, materials and products are delivered to the client or customer exactly when they are needed, and production processes are scheduled so that there is no downtime.
Just in time delivery systems can be applied to both manufacturing and logistics operations. In manufacturing, just in time delivery minimizes the amount of raw materials and finished goods that need to be stored on site. This not only saves space, but also reduces the risk of obsolescence and inventory shrinkage.
In logistics, just in time delivery can refer to either the timing of deliveries from suppliers, or the timing of deliveries to customers. When suppliers deliver materials on a just in time basis, it minimizes the amount of inventory that needs to be managed by the logistics team. This can lead to significant cost savings, as well as improved customer service levels. When deliveries are made to customers on a just in time basis, it ensures that they receive their orders exactly when they need them, without having to wait for excess inventory to be shipped.
Just in time delivery systems require careful planning and coordination between all parties involved.
